Insurers urge flood-hit clients to immediately file claims for losses

MANILA, Philippines - The Philippine Insurers and Reinsurers Association (PIRA) is reminding the insured public, including those with “Acts of Nature” coverage for their homes and cars, to immediately file claims for losses.

PIRA is the trade organization representing the 78-strong non-life insurance (also known as the property and casualty or P&C) industry. It covers damage to automobile, marine, property, among others.

“We advise our countrymen to file claims with their insurance companies so they can start rebuilding whatever was damaged by the floods,” PIRA said in a statement.

PIRA urged the insured public to immediately file claims and complete all necessary documents ASAP.

“Insurance companies need to make sure the claim is legitimate and accurate. Insurance is not charity. Insurance companies are here to indemnify the insured, meaning they are here to put their clients back to their previous position prior to the loss. The insured should not profit from insurance,” PIRA said.

PIRA noted that there are cases when claims are denied mainly because the loss was not covered under the policy.

“During Ondoy in 2009, there were cars that got flooded which had comprehensive insurance but did not have Acts of Nature coverage. Sadly, you need AON to cover you from flood. The same goes true with fire insurance. You need protection from allied perils such as typhoon and flood to be able to collect from your insurer,” PIRA pointed out.

PIRA added that though flood is an added cost as far as insurance premiums are concerned, the good news is it doesn’t really cost much.

“For a mere 0.5 percent of the value, you can have your property – your car, house, factory or machinery – insured against flood which is becoming a growing risk,” PIRA stressed.